Loan default is a universal phenomenon associated with all types of business enterprises. However, loan default in case of banks has special significance because extending of credit is almost the exclusive business of banking institutions. Naturally magnitude of loan default largely determines the destiny of a bank. So, its importance is absolute for the very existence of a bank. As banks deal with other people’s money, quick recovery of loans is one of the most important factors that banks make commercially viable. Investors and entrepreneurs may default in paying their loans for various reasons. Some of the reasons are as follows: * When an entrepreneur takes up any project, he/she makes a project profile. The main goals, objectives and the cost of production are set out there. Likewise, the importers are also required to submit their project profile showing therein the proposed rate of profit to the Bank for the purpose of obtaining the loan. Here, it is seen that some entrepreneurs prepare over invoiced proposals in their bids for extra money from the banks for personal gain. * Some industries turn sick despite getting adequate loans from banks. The main reasons for this are weak management, wrong recruitment and administration of the standard of the commodity and not following correct marketing procedures. * Inadequate prudential regulation and weak supervision is a recipe for banking problem i.e. creating non-performing assets. * Poor prudential regulation and supervision are made all the worse by an inadequate legal framework. * Banks are not the only problem in the financial sector. Capital market is small and do not offer a competitive alternative bank borrowing. * Many of the classified loans are directive loans which actually given by influence. For any influence, the banks have to lend money to projects without examining their economic viability. * Ignorance of knowledge for proper analyzing of loan proposal by credit officers. * Negligence of the credit officers. Many credit officers do not perform his/her assignment sincerely despite getting all possible information about the respective credit. * Connivance of the Bank personnel with the borrower.

The recovery in fact starts from the selection of borrower. When a loan applicant approaches a loan officer’s/credit officer’s desk or calls over telephone for a loan, then he/she has to look upon each loan request as a challenge and an opportunity, not as a chore. It is well known that banks have pressing problems owing to bad credits in Bangladesh. To improve the credit portfolio better credit analysis is essential. Through good credit analysis, we can reduce the volume of bad or classified loans and it helps to form a good economic infrastructure for any country. In this article, it has been emphasized upon 5 C’s for good credit and 5 C’s for bad credit and other 1C for good and bad credit which can be used as a lending tool for any credit officer. First, lenders must know the Cs of good credit. These Cs are the tried and true rules of good loan making’ consisting of Character, Capacity, Condition, Capital and Collateral. These traditional five Cs make the core of sound commercial loan making. However, first of all after all analysis we have to believe that credit will be good and it will be refunded as per schedule. As we know that the word “credit” comes from the Latin word “credere”, which means "to believe" or "to entrust". Character

Character refers to the likelihood that a credit customer will try to repay the debt. This factor is of considerable importance because every credit transaction implies a promise to pay. The principal question is: Will the firm (borrower) make an honest effort to pay the debt, of is it likely to try to get away with something? Experienced credit managers frequently insist that the moral character of a borrower is the most important issue in a credit...

...administration which is the base of practical knowledge. For Example, in our 7th semester we are experiencing about the credit management system of an organization. Our course namely “Credit Management” introduces us how to manage the credit of an organization. For being practical knowledge, we select “Summit Power Limited”. And our key topic of study is “Performance Evaluation and Credit Risk Management of Summit Power Limited.” It was...

...Analysis of Credit Card Debt
UNKNOWN - - - - - -
- - - - - - University online
MAT109 A01
Introduction
Credit card debt is one big struggle in America. This is due to poor income, divorce settlements, unemployment and even gambling. Don’t have any health care benefits? In need to go to the doctor? If yes, then there is a medical bill coming your way. Taking out loans and borrowing money creates more debt if you can't pay it in on time....

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Analysis of Credit Card Debt
Jeanette Macintyre
Argosy University
MAT 108
Analysis of Credit Card Debt
Credit card debt is a reality for many in today’s world. Suppose that you had a $5,270.00 balance on a credit card with an annual percentage rate (APR) of 15.53 percent. Consider the following questions and prepare a report based upon your conclusions.
1. Most credit...

...Analysis of Credit Card Debt
1. Most credit cards require that you pay a minimum monthly payment of two percent of the balance. Based upon a balance of $5,270.00, what would be the minimum monthly payment (assuming no other fees are being applied)?
In order to find out what the minimum monthly payment would be we would have to
Multiply the minimum monthly payment percentage with the balance.
2% x $5,270.00 = 0.02 x $5,270.00 = $105.40
2....

...Commandments of Commercial Credit: The 'Cs' of Good and Bad Loans
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Document 1 of 1
The Ten Commandments of Commercial Credit: The 'Cs' of Good and Bad Loans
Author: Golden, Sam; Walker, Harry M
Publication info: The RMA Journal 94. 9 (Jun 2012): 42-46,13.
http://search.proquest.com/docview/1039695514?accountid=27932
Abstract: One of the first things examiners and lenders learn is the...